Triangle Broken, Send Glue

Unless I'm mistaken, a well developed symmetrical triangle in the DJIA daily chart was broken yesterday with a test up to the lower broken trend line today. According to my well worn copy of Edwards and MaGee, the next move is down. The way I see it, the first impulse wave down had ~12 days in it. If the next one starting from yesterday also has 12, it would end just after the election. Fine time for a low, would you say?

Unless I'm mistaken, a well developed symmetrical triangle in the DJIA daily chart was broken yesterday with a test up to the lower broken trend line today. According to my well worn copy of Edwards and MaGee, the next move is down.

The way I see it, the first impulse wave down had ~12 days in it. If the next one starting from yesterday also has 12, it would end just after the election. Fine time for a low, would you say?

It depends on how you draw this triangle. I draw it on hourly chart. I found it only broken briefly today and followed by a powerful and decisive intra day reversal completely nullified the brief breakdown. Right now, ES is right at the middle area of the contracting triangle. I see it will go up to test the top trendline first. If it gets broken, we will have several weeks of running up. If the test failed at the top trensdline, it will take a nother trip down in the triangle and test the lower trendline. JMHO

Edited by redfoliage2, 23 October 2008 - 10:03 PM.

Red, I am using the Bigcharts daily candlestick plot to see the break. I think the "down" interpretation my have the upper hand based on the Nasty, which is making new lows and appears to be leading the rest of the market into the crapper. Also, as I noted, the election looms, and I don't think WallStreet will like the results if the polls are correct. Sell on the rumor, you know.